General

Know who must invest in cryptocurrency

crypto consultant image

Investment is the pillar for you to have a safe and secured life. especially when you would have old age, medical requirements, and emergency funding and is considered to be substantial financial support. With so many investment schemes, Golden Profit, bank deposit schemes, and plans, gold investment, property, etc., cryptocurrency investment is also a new age option for investment.

Since the surfacing of Bitcoins, the first, crypto token, the digital currency has gained rapid popularity with the estimated value of the current cryptocurrency in circulation being around $919 billion. 

As per the market evaluation, approximately $389 billion is bagged by Bitcoin alone out of this based on the statistical records of July 7, 2022. While many millennials have already started investing in the volatility, a decentralized blockchain-operated system can be intimidating for many to plan for an investment. 

  • Cryptocurrency investment requires well-dug research work.
  • Study and evaluate market status before investing.
  • Wait for a downtrend that is a value drop of the digital token you choose to invest in.
  • As per experts’ newbies should invest only 5% of their total savings into cryptocurrency.

Understand before you Invest 

Cryptocurrencies with a good market record, a stable growth over time mostly have information and write-ups in the whitepaper. Read through these whitepapers to understand the digital coin you pick to invest in and accordingly move ahead. It might not be a good idea to move with any digital token without any information in a whitepaper. Besides you can also check out online sources, read through tips of financial experts around the world, speak about the cryptocurrency market, potential coins, etc. 

Invest Only after Analysing Risk 

Well, the risk is involved in most investments the margin is either high or low, however, in the case of cryptocurrency investments, the major risk involved is the volatility of the market. If you notice only the movement of Bitcoins, it projects the rate of volatility that is often associated with cryptocurrency.

As per the price recorded recently, Bitcoin’s price is now around $23184.86 per (BTC / USD). However, the price of Bitcoin is approximately around 66.30% lower than the all-time high of $68789.63 which was reached in November 2021. Therefore, if you want to invest in the financial you have a stable financial backup, and potential savings to support your risk of cryptocurrency investment, it is indeed a good try. 

Apart from the volatility, cryptocurrency trading is also associated with regulatory issues. The entire cryptocurrency system is a decentralized system, operated through blockchains that lacks security to somewhat extent. Besides, many times investors invest in projects without properly turning through the leaves of records behind the project, leading to pits like crypto-related scams, ending up losing the entire investment. Scammers, hackers, and investment in inactive digital coins could of course lead to substantial risk. 

However, these could be overcome with proper responsible moves like:

  • Studying the market before investing.
  • Investing only a small portion of savings.
  • Investing through a reputed and secured exchange platform.
  • Storing your digital assets in a cold wallet or offline. 

Investment Security 

Many digital coin exchanges offer insurance protection to investors. This insurance coverage helps the investors to overcome losses in case of scams or hacks. If you are putting forth a huge fortune into investment in cryptocurrencies, it is essential that you too look for an exchange that offers insurance protection. Either you must invest only an amount which is ready to lose in the worst scenario or look for security products like that offered by a popular crypto exchange called Coinbase, which provides insurance against theft of your digital assets, Coincover too offers security privileges to investors and safeguards their investment against technology failures. 

Cryptocurrency investment is perhaps suitable for those who are looking for new avenues of investment beyond regular schemes. Risks are associated with big investments, and if you want to build good fortune and have the patience to hold on for a long time, cryptocurrency is truly lucrative and out of the box too. Similarly, you can also extend your investments to Yuan, the new centralized Chinese cryptocurrency investment as well. Even though there are risks, cryptocurrency has led to the making of thousands of millionaires too.

Recommended:
Recommended:

About the author

Henry Chukwu

Android is my specialty, what I don't know about Android devices isn't worth knowing ?

Leave a Comment

Send this to a friend